Charting the Markets: The Nasdaq Loses Its Edge
A challenging chart for the QQQ has us worried these stocks may underperform.
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When the calendar turned on January 1 it seemed a tidal shift in demand for stocks moved from the big Nasdaq names into anything else. The big story, of course, has been metals, but if you look at housing stocks, commodities, oil/gas, retail and industrials you would notice a huge renaissance has occurred.
No longer can an investor hide out in Nvidia (NVDA) , Microsoft (MSFT) or some other big-name tech stock. Those names and others are off to a slow start in 2026 and if the first six weeks of the year are any indication, it could be a tough year ahead.
The chart of the Nasdaq 100 (QQQ) is slightly bullish. The candles are teal, which is modestly bullish on the GoNoGo composite of indicators so we'll give the QQQ the benefit of the doubt.
Money flow remains poor and is at the zero line. This is a weekly chart and that means it takes some time for the bigger (longer-term) trend to shift. However, the indicators are already bearish and have effectively pulled the market lower.
Does the Nasdaq have to be strong for the rest of the market to rise? No, not really, as the small-caps seem to be the leader. But the awful performance so far is indicative of investors moving away from technology-related names.
Let's keep our eyes on this trend if it continues.
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At the time of publication, TheStreet Pro Portfolio was long NVDA and MSFT.
